SK3 Group, Inc. (OTCMKTS:SKTO) Rises on PR News
The volatile performance shown by the stock of SK3 Group, Inc. (OTCMKTS:SKTO) continues on. After dropping down for 4 days and wiping a significant portion of its gains now SKTO is retracing its steps and going upwards. On Friday it surged by nearly 50% and returned to $0.028 per share. Traders were reinvigorated and managed to shift 156 million shares during the course of the day, more than tripling the amount from the previous session.
The sudden display of optimism happened halfway through the session so pinpointing the reason for it is quite easy – SKTO released a PR statement at exactly the same time. Although the PR itself was focused on a new management deal with a medical marijuana logistics company it also revealed that the PharmaJanes.com site is supposed go live by the end of the month.
PharmaJanes is being developed by another pennystock company Alternative Energy Partners Inc (OTCBB:AEGY) and should be the exclusive online marketing platform for SKTO‘s products. Investors have been waiting for the site to be finished for months now with its beta version being live since September. We will wait to see if another announcement comes before the end of the week containing more details. As you could expect the stock of AEGY was also influenced by the news although curiously enough the company didn’t make an official statement on its own. AEGY more than doubled their share price after jumping by 115% and closing the day at $0.0028. The enthusiasm for both companies should hold for now unless traders decide to take their profits while they can.
And there certainly isn’t a shortage of red flags around SKTO that demand caution when dealing with the stock. The company boasts truly impressive revenues amounting to 17 million just for the quarter ending September 30 but they are having troubles collecting any of that money. As a result the ongoing dilution of their common stock has reached alarming levels. For just nine months SKTO has nearly doubled the number of outstanding shares from 361 million to 601 million.
The marijuana industry has been the center of attention for the past few weeks making the companies involved in it even more volatile. Any investment decisions should be made after doing your own due diligence and weighing in all the risks around the stock.
